Agreement reached with G7, US companies will be exempt from certain provisions of the global minimum tax.

On June 29, Jin10 reported that the G7 issued a statement indicating that the United States and the G7 have agreed to support a proposal that will exempt American companies from certain provisions of the “Global Minimum Tax” established in 2021. Canada, the current G7 presidency, stated in the announcement that the G7 has established a “parallel system” in response to the U.S. government’s agreement to repeal the retaliatory tax proposal in Section 899 of the tax and spending bill introduced by former President Trump. U.S. Treasury Secretary Basant announced on the 26th that an agreement has been reached with the G7, whereby the G7 will conditionally exempt American companies from some taxes in exchange for the removal of Section 899, commonly known as the “retaliatory tax,” from the U.S. “Build Back Better” Act.